“The information age is rapidly changing how commerce is done and by
whom,” said Tobi Lütke, Shopify’s CEO. “By harnessing these changes to
empower entrepreneurs, Shopify is meeting a need that is not only global
and growing, but that is likely to continue growing for the foreseeable
future.”

“We’re off to an incredible start this year, as more merchants around
the globe choose Shopify to start, grow, and manage their businesses,”
said Amy Shapero, Shopify’s CFO. “Entrepreneurs and enterprises alike
recognize that Shopify’s merchant-driven mission helps them build their
most successful business and thrive in an ever-changing retail
landscape. That’s why we continue to invest in our platform, expanding
our product and feature set, and the overall Shopify experience - making
commerce easier, more accessible, and better for everyone, everywhere.”

First-Quarter Financial Highlights

Total revenue in the first quarter was $320.5 million, a 50% increase
from the comparable quarter in 2018.

Subscription Solutions revenue grew 40% to $140.5 million. This
increase was driven primarily by growth in Monthly Recurring Revenue1
("MRR"), largely due to an increase in the number of merchants joining
the Shopify platform.

Merchant Solutions revenue grew 58%, to $180.0 million, driven
primarily by the growth of Gross Merchandise Volume2
("GMV"), as well as by robust growth in Shopify Capital and Shopify
Shipping.

MRR as of March 31, 2019 was $44.2 million, up 36% compared with $32.5
million as of March 31, 2018. Shopify Plus contributed $11.3 million,
or 26%, of MRR compared with 22% of MRR as of March 31, 2018.

GMV for the first quarter was $11.9 billion, an increase of $3.9
billion, or 50%, over the first quarter of 2018. Gross Payments Volume3
("GPV") grew to $4.9 billion, which accounted for 41% of GMV processed
in the quarter, versus $3.0 billion, or 38%, for the first quarter of
2018.

Gross profit dollars grew 46%, to $180.3 million, compared with the
$123.8 million recorded for the first quarter of 2018.

Operating loss for the first quarter of 2019 was $35.8 million, or 11%
of revenue, versus a loss of $20.3 million, or 9% of revenue, for the
comparable period a year ago.

Adjusted operating loss4 for the first quarter of 2019 was
0.4% of revenue, or $1.4 million; adjusted operating loss for the
first quarter of 2018 was 0.1% of revenue, or $0.2 million.

Net loss for the first quarter of 2019 was $24.2 million, or $0.22 per
share, compared with $15.9 million, or $0.16 per share, for the first
quarter of 2018.

Adjusted net income4 for the first quarter of 2019 was
$10.3 million, or $0.09 per share, compared with adjusted net income
of $4.2 million, or $0.04 per share, for the first quarter of 2018.

At March 31, 2019, Shopify had $2.0 billion in cash, cash equivalents
and marketable securities, compared with $1.97 billion on December 31,
2018.

First-Quarter Business Highlights

Shopify launched Shopify Studios, a full-service TV and film content
development and production house, with the goal of redefining and
inspiring entrepreneurship through accessible, relevant, and
entertaining content, paving the path for future business owners and
innovators.

Shopify launched a multi-currency feature for Shopify Plus merchants
using Shopify Payments, enabling these merchants to sell in multiple
currencies and get paid in their local currency.

Shopify Shipping adoption continued to climb, with more than 40% of
eligible merchants in the United States and Canada using Shopify
Shipping in the quarter.

Purchases from merchants’ stores coming from mobile devices versus
desktop continued to climb in the quarter, accounting for 79% of
traffic and 69% of orders for the three months ended March 31, 2019,
versus 75% and 64%, respectively, for the first quarter of 2018.

Shopify Capital issued $87.8 million in merchant cash advances and
loans in the first quarter of 2019, an increase of 45% versus the
$60.4 million issued in the first quarter of last year. Shopify
Capital has grown to approximately $535 million in cumulative cash
advanced since its launch in April 2016 through the first quarter of
2019, approximately $107 million of which was outstanding on March 31,
2019.

Subsequent to the close of our first quarter:

Shopify launched its new retail hardware collection including the Tap
& Chip Reader, Dock and Stand to help merchants deliver a better
retail experience with the most flexible, seamless in-person selling
solution.

Shopify launched its first integrated brand campaign, “Let’s Make You
a Business”, in 12 North American markets aimed at raising brand
awareness for Shopify and encouraging the next wave of independent
business owners to turn their big ideas into businesses.

Shopify launched native language capabilities on its platform in Dutch
and Simplified Chinese to merchants in a limited beta, bringing the
total number of languages in which the Shopify platform is available
to nine.

Shopify hosted its first Commerce+ event in Sydney, Australia,
attended by several top local merchants to discuss how Shopify Plus
provides a centralized commerce platform for today’s high-growth and
high-volume businesses.

Financial Outlook

The financial outlook that follows constitutes forward-looking
information within the meaning of applicable securities laws and is
based on a number of assumptions and subject to a number of risks.
Actual results could vary materially as a result of numerous factors,
including certain risk factors, many of which are beyond Shopify’s
control. Please see "Forward-looking Statements" below.

In addition to the other assumptions and factors described in this press
release, Shopify’s outlook assumes the continuation of growth trends in
our industry, our ability to manage our growth effectively and the
absence of material changes in our industry or the global economy. The
following statements supersede all prior statements made by Shopify and
are based on current expectations. As these statements are
forward-looking, actual results may differ materially.

These statements do not give effect to the potential impact of mergers,
acquisitions, divestitures or business combinations that may be
announced or closed after the date hereof. All numbers provided in this
section are approximate.

For the full year 2019, Shopify currently expects:

Revenues in the range of $1.48 billion to $1.50 billion

GAAP operating loss in the range of $130 million to $140 million

Adjusted operating income4 in the range of $20 to $30
million , which excludes stock-based compensation expenses and related
payroll taxes of $160 million

For the second quarter of 2019, Shopify currently expects:

Revenues in the range of $345 million to $350 million

GAAP operating loss in the range of $46 million to $48 million

Adjusted operating loss4 in the range of $6 million to $8
million, which excludes stock-based compensation expenses and related
payroll taxes of $40 million

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss our
first-quarter results today, April 30, 2019, at 8:30 a.m. ET. The
conference call will be webcast on the investor relations section of
Shopify’s website at https://investors.shopify.com/events/Events-Presentations/default.aspx.
An archived replay of the webcast will be available following the
conclusion of the call.

Shopify’s First-Quarter 2019 Interim Unaudited Condensed Consolidated
Financial Statements and Notes and its First-Quarter 2019 Management’s
Discussion and Analysis are available on Shopify’s website at www.shopify.com,
and will be filed on SEDAR at www.sedar.com
and on EDGAR at www.sec.gov.

About Shopify

Shopify is the leading multi-channel commerce platform. Merchants use
Shopify to design, set up, and manage their stores across multiple sales
channels, including mobile, web, social media, marketplaces,
brick-and-mortar locations, and pop-up shops. The platform also provides
merchants with a powerful back-office and a single view of their
business, from payments to shipping. The Shopify platform was engineered
for reliability and scale, making enterprise-level technology available
to businesses of all sizes. Headquartered in Ottawa, Canada, Shopify
currently powers over 800,000 businesses in approximately 175 countries
and is trusted by brands such as Unilever, Kylie Cosmetics, Allbirds,
MVMT, and many more.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared
and presented in accordance with United States generally accepted
accounting principles (GAAP), Shopify uses certain non-GAAP financial
measures to provide additional information in order to assist investors
in understanding our financial and operating performance.

Management uses non-GAAP financial measures internally for financial and
operational decision-making and as a means to evaluate period-to-period
comparisons. Shopify believes that these non-GAAP measures provide
useful information about operating results, enhance the overall
understanding of past financial performance and future prospects, and
allow for greater transparency with respect to key metrics used by
management in its financial and operational decision making. Non-GAAP
financial measures are not recognized measures for financial statement
presentation under U.S. GAAP and do not have standardized meanings, and
may not be comparable to similar measures presented by other public
companies. Such non-GAAP financial measures should be considered as a
supplement to, and not as a substitute for, or superior to, the
corresponding measures calculated in accordance with GAAP. See the
financial tables below for a reconciliation of the non-GAAP measures.

Forward-looking Statements

This press release contains certain forward-looking statements within
the meaning of applicable securities laws, including statements
regarding Shopify’s financial outlook and future financial performance.
Words such as "expects", "continue", "will", "anticipates" and "intends"
or similar expressions are intended to identify forward-looking
statements.

These forward-looking statements are based on Shopify’s current
projections and expectations about future events and financial trends
that management believes might affect its financial condition, results
of operations, business strategy and financial needs, and on certain
assumptions and analysis made by Shopify in light of the experience and
perception of historical trends, current conditions and expected future
developments and other factors management believes are appropriate.
These projections, expectations, assumptions and analyses are subject to
known and unknown risks, uncertainties, assumptions and other factors
that could cause actual results, performance, events and achievements to
differ materially from those anticipated in these forward-looking
statements. Although Shopify believes that the assumptions underlying
these forward-looking statements are reasonable, they may prove to be
incorrect, and readers cannot be assured that actual results will be
consistent with these forward-looking statements. Actual results could
differ materially from those projected in the forward-looking statements
as a result of numerous factors, including certain risk factors, many of
which are beyond Shopify’s control, including but not limited to: (i)
merchant acquisition and retention; (ii) managing our growth; (iii) our
history of losses; (iv) our limited operating history; (v) our ability
to innovate; (vi) a disruption of service or security breach; (vii)
payments processed through Shopify Payments; (viii) our reliance on a
single supplier to provide the technology we offer through Shopify
Payments; (ix) the security of personal information we store relating to
merchants and their customers, and consumers with whom we have a direct
relationship; (x) evolving privacy laws and regulations, cross-border
data transfer restrictions, data localization requirements and other
domestic or foreign regulations; (xi) our potential inability to hire,
retain and motivate qualified personnel; (xii) international sales and
the use of our platform in various countries; and (xiii) other one-time
events and other important factors disclosed previously and from time to
time in Shopify’s filings with the U.S. Securities and Exchange
Commission and the securities commissions or similar securities
regulatory authorities in each of the provinces or territories of
Canada. The forward-looking statements contained in this news release
represent Shopify’s expectations as of the date of this news release, or
as of the date they are otherwise stated to be made, and subsequent
events may cause these expectations to change. Shopify undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by law.

(Expressed in US $000’s, except share and per share amounts,
unaudited)

Three months ended

March 31, 2019

March 31, 2018

$

$

GAAP Gross profit

180,291

123,842

% of Revenue

56

%

58

%

add: stock-based compensation

714

426

add: payroll taxes related to stock-based compensation

100

63

Non-GAAP Gross profit

181,105

124,331

% of Revenue

57

%

58

%

GAAP Sales and marketing

105,022

75,784

% of Revenue

33

%

35

%

less: stock-based compensation

6,835

4,038

less: payroll taxes related to stock-based compensation

810

731

Non-GAAP Sales and marketing

97,377

71,015

% of Revenue

30

%

33

%

GAAP Research and development

76,355

47,716

% of Revenue

24

%

22

%

less: stock-based compensation

18,115

10,865

less: payroll taxes related to stock-based compensation

1,808

1,051

Non-GAAP Research and development

56,432

35,800

% of Revenue

18

%

17

%

GAAP General and administrative

34,704

20,675

% of Revenue

11

%

10

%

less: stock-based compensation

5,500

2,596

less: payroll taxes related to stock-based compensation

531

345

Non-GAAP General and administrative

28,673

17,734

% of Revenue

9

%

8

%

GAAP Operating expenses

216,081

144,175

% of Revenue

67

%

67

%

less: stock-based compensation

30,450

17,499

less: payroll taxes related to stock-based compensation

3,149

2,127

Non-GAAP Operating Expenses

182,482

124,549

% of Revenue

57

%

58

%

Shopify Inc.

Reconciliation from GAAP to Non-GAAP Results (continued)

(Expressed in US $000’s, except share and per share amounts,
unaudited)

Three months ended

March 31, 2019

March 31, 2018

$

$

GAAP Operating loss

(35,790

)

(20,333

)

% of Revenue

(11

)%

(9

)%

add: stock-based compensation

31,164

17,925

add: payroll taxes related to stock-based compensation

3,249

2,190

Adjusted Operating loss

(1,377

)

(218

)

% of Revenue

—

%

—

%

GAAP Net loss

(24,151

)

(15,902

)

% of Revenue

(8

)%

(7

)%

add: stock-based compensation

31,164

17,925

add: payroll taxes related to stock-based compensation

3,249

2,190

Adjusted Net income

10,262

4,213

% of Revenue

3

%

2

%

GAAP net loss per share attributable to shareholders

(0.22

)

(0.16

)

add: stock-based compensation

0.28

0.18

add: payroll taxes related to stock-based compensation

0.03

0.02

Adjusted net income per share attributable to shareholders

0.09

0.04

Weighted average shares used to compute GAAP and non-GAAP net loss
per share attributable to shareholders

110,921,276

102,256,644

1.

Monthly Recurring Revenue, or MRR, is calculated by multiplying the
number of merchants by the average monthly subscription plan fee in
effect on the last day of that period and is used by management as a
directional indicator of subscription solutions revenue going
forward assuming merchants maintain their subscription plan the
following month.

2.

Gross Merchandise Volume, or GMV, represents the total dollar value
of orders processed on the Shopify platform in the period, net of
refunds, and inclusive of shipping and handling, duty and
value-added taxes.

3.

Gross Payments Volume, or GPV, is the amount of GMV processed
through Shopify Payments.